Student __________________________________________ Date ____________ Period _______
Chapter 10 Form of a Contract: BEFORE YOU SIGN
Read the following information. Then answer the questions that follow.
When you sign a business or other legal document, you start a chain of legal events that may be difficult to
control. The following are some practical suggestions to avoid trouble.

Be sure you know what you are signing and how it will bind you.

Read everything in a document, including the fine print. Remember, you won't be able to enforce a wordof-mouth promise if it contradicts what has been printed or typed.

Check the details, including dates, prices, names, and terms. It's what the paper actually says, not what
you thought it said, that counts legally. Be sure the language clearly states your desires.

If you cosign a note or indorse a check, you may wind up paying it if the party primarily liable fails
to pay.

The law may require special formalities when you sign certain papers. For example, at least
two witnesses must sign a will in the presence of each other and the maker of the will. If you sign, you
may have to testify to that effect in court.

You may buy a car, an appliance, or some other goods on an installment sales contract. The property is
not yours until you make the last payment. If you miss a payment, the seller may take back the goods and
keep your past payments.

Always keep a copy of what you signed. Don't allow anyone to talk you out of your copy.
1. You sign up for a one-year membership at a health spa. The contract is extremely wordy as well as confusing,
so you do not bother to read the fine print. Besides, the sales representative assures you that you will not be
spending more than you can afford. He misled you. The representative's oral contract contradicts the written one.
Can his word-of-mouth promise be enforced despite what is stated in the written contract? Explain your answer.
No. You will not be able to enforce a word of mouth contract if it contradicts what has been printed or typed.
2. You have hired a contractor to make repairs on your home. You sign a contract for the repairs. After the
signing, you realize that the contract states that the repairs will cost $4,000. You thought the repairs would cost
$3,000. Can the contract be changed based on your assumption? Why or why not?
No. It’s what the written contract actually says, not what you thought it said.
3. Your great-aunt recently passed away. Before she died, she secretly rewrote her will and left you her life
savings. Your cousin says that because no one witnessed the signing of the will, the will is invalid. Is your cousin
right? Why or why not?
Yes. At least two people must sign a will in the presence of each other, and the maker of the will.
4. Your friend buys a stereo on an installment sales contract. He has made all but the last payment. He recently
lost his job and can't make the last payment. The seller says that the stereo must be returned. Your friend says this
isn't fair because he has already paid for most of the stereo. Does the store have the right to take the stereo back?
Explain your answer.
Yes. The property doesn’t belong to the buyer until the last payment is made.
5. You hire a painter to paint your office building. You sign a contract for the job. When you ask for a copy of the
contract, the painter replies that unfortunately she has only one copy, which she needs to keep for her records.
What should you do? Explain your answer.
Tell the painter that you will have to have a copy. Don’t allow her to talk you out of your copy.
Student __________________________________________ Date ____________ Period _______
CHAPTER 11: How Contracts Come to an End WORD PUZZLE
Fill in the crossword puzzle by completing the statements.
Down
Across
1. Ended
Terminated
2. When all terms are carried out properly, a
contract is said to be discharged by Complete
performance.
4. When the best interest of society demands
that a contract be terminated, the contract is
discharged by
operation of law.
6. An amount of time suitable to the object in
view. Reasonable time
7. The discharge of a contract by the
substitution of another one for it accord and
satisfaction
3. U.S. currency
legal tender
5. An offer to perform a certain act to fulfill a
contract.
Tender of performance
8. Each party releases the other form obligations.
Mutual release
9. The promise of performance does not
discharge a contract.
10. When a contracts end, that are said to be
discharged, or terminated.
11. Statutes of limitations specify the length of
time within which a legal action may be brought
on a contract.
12. A test to determine whether a job is done in a
satisfactory manner. Reasonable person test